Barclays boss Bob Diamond told 'we want branches NOT bonuses'

Market day is a chance for farmer Rob Lewis to catch up with old friends, sell some of his lambs, pick up a cheque for the previous week's sales and bank his money at the Barclays branch in Rhayader - the oldest town in mid-Wales. But from March 25, Rob, who farms 150 beef cattle and 2,500 sheep just outside Rhayader at Cwmdauddwr, will have to change his routine on Tuesdays.

Barclays has decided to shut its Rhayader branch and an outside cash machine, claiming they are not used enough. The bank says transactions at the part-time branch have fallen by 13 per cent over the past three years, resulting in staff 'spending long periods of time without serving customers'. But customers strongly dispute this claim.

Rob, 49, is furious about Barclays' decision to desert and asks: 'How does the bank expect me to go about my business once the branch shuts?

Furious: Rob Lewis relies on the Barclays branch when he comes to market

More...

'Does it think I am going to travel to Llandrindod Wells to do my
banking at the Barclays branch there - a round trip of more than 25
miles - or to Llanidloes, a return journey of 22 miles? No chance. I
have a business to run.'

Rob is not the only person in Rhayader who is angry. Last Monday in
the freezing cold, dozens of Barclays customers stood shivering outside
the branch, armed with no more than woolly gloves and hats - and
banners proclaiming 'Branches not bonuses! Keep Barclays, Rhayader
open'.

The banners, of course, referred to the fact that the banking giant
is about to report multi-million pound bonuses for more than 1,000 top
staff when it announces 2010 profits of more than £6 billion on Tuesday
week. Chief executive Bob Diamond is in line for a £9 million bonus -
on top of his salary, shares and perks package. In 2009, his 'package'
came to a staggering £63 million.

Rhayader is not the only town that will soon lose its Barclays
branch. It is one of 22 that will be shut in the first quarter of this
year. Several of these are the last branch in town. In Rhayader's case,
the town will be left with only a parttime HSBC branch that is open
three days a week.

But its future is in doubt, given HSBC's record when it comes to closing outlying branches.

Rhayader also has a Post Office.

Protest: Pam Knight, left, Barbara Lawrence and Liz Lloyd get their message about Barclays across

The family has had a business account with Barclays for more than 50
years - the brothers' late father, Cliff, set up the shop after
working as an engineer on the nearby Claerwen Dam.

Joe says: 'Most of our customers are farmers who prefer to pay by
cheque. It means we bank our takings at least once a week in town at
Barclays. Once it closes, we will have no choice but to travel to
Llandrindod Wells to bank. It will be a big inconvenience for us.'

Joe says he will not switch accounts to HSBC because he believes it
is only a matter of time before its Rhayader branch is also closed.

Derek French, boss of the Campaign for Community Banking Services,
says further Barclays closures this year are likely. 'Once they've
started, they'll continue,' he says.

In April 2000, Barclays caused an outcry when it closed 172 branches
in one day, leaving dozens of rural communities and suburban areas
without any banking facilities. Since then the bank has not been as
aggressive as rival HSBC in axeing branches.

Last year, according to data compiled by French, Barclays shut 24
branches, although many of these were outlets of Woolwich Building
Society taken over in August 2000 that had not been successfully
integrated into Barclays' network. By comparison, HSBC shut 52 branches
while Lloyds axed 17.

French believes Barclays' decision to axe its branch-based investment
advice service - confirmed late last month - could trigger further
closures as branches lose the revenue generated by the sale of
investment products. The bank disputes this.

In Rhayader, there is bewilderment at Barclays' decision to close its
branch. Local businessmen, residents, councillors, Mayor Lee Price,
local Welsh Assembly member Kirsty Williams and heads of local
charitable organisations are all angry.

Daisy Powell has run the newsagent next door to Barclays for the past 52 years and has been a customer of the bank all that time.

She banks her takings there - primarily cash - three times a
week. She also banks personally with Barclays and operates an account
for the rent she receives from several properties she owns in Rhayader.

Daisy, with the help of daughter Anne, 44, who also works in the
shop, organised a petition against the closure that has been signed by
1,000 of the 2,000 people who live in Rhayader.

Although Barclays insists it will not reverse its decision to close
the branch, Daisy is hoping for a miracle. 'I'm not shifting my banking
business elsewhere,' she says. 'I've been with Barclays for more than 50
years and I'm not changing banks.

'If Barclays won't change its mind, I suppose Anne will have to drive
across to Llandrindod Wells or Llandidloes to do our banking. Mind you,
it will be an inconvenience, especially in summer when the roads round
here are full with tourists.

'It will also present us with security issues. Do I really want Anne travelling alone in a car with lots of cash? No.'

Carolyn Flynn, manager of the Rhayader & District Community
independent charity, says the bank's closure will be a severe blow to
the town.

The charity helps many of Rhayader's older residents, such as Edie
Davenport, to stay independent by providing them with transport, often
driving them to the branch to do their banking.

'It's a great shame', says Carolyn. 'Barclays has established roots in this town for more than 50 years.

'To suddenly uproot them may not inconvenience Barclays in its
relentless pursuit of profits, but it will certainly disrupt us and the
people we help.'

Liz Lloyd is chairwoman of Rhayader 2000, an organisation set up to
promote the town. It is busy advertising the area as the 'wildlife
centre of Wales'. She says: 'The closure will cause great inconvenience
to local businesses. It will also make it difficult for tourists, the
lifeblood of this town in summer, to get cash. Once the Barclays cash
machine is removed, the town will depend on the HSBC one - and that is
always running out.'

Kirsty Williams, Liberal Democrat Welsh Assembly member for Brecon
and Radnorshire, says: 'I'm appalled by Barclays' decision. At a time
when all the talk is about multi-million pound bonuses to key staff,
Barclays is pulling the plug on a branch that costs a mere fraction of
these sums to run. Barclays has no idea what a cataclysmic effect its
closure will have on Rhayader.

'It's high time the banks were forced to adhere to certain rules
governing their commitment to rural communities such as Rhayader. They
can't just be allowed to waltz off and abandon them with impunity. They
must be held to some form of account.'

Barclays told Financial Mail: 'We recognise that this decision may
inconvenience some customers. Our staff at Rhayader will continue to
talk to our customers and provide support over the coming months to
discuss their banking needs.'

It also said that 67 per cent of Rhayader customers already used its
branches in Llandrindod Wells or Llandidloes while personal customers
could use the Post Office in the town for deposits or cash withdrawals.

On a more general level, the bank said it remained ' committed' to
its branch network and that its investment in the refurbishment of
branches - 200 last year - would continue.

As for farmer Rob Lewis, he has made up his mind. He is moving his 11
accounts - personal, family and business - to HSBC. 'If Barclays
doesn't want to service my banking needs, I don't want to do business
with them,' he says.